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Save, but don't cut corners on Car Insurance

Tue, 13 Sep 2005

Older people looking to make sure they set aside as much money as possible before retirement would be well-advised not to spend less on a good Car Insurance policy in order to do so.

Research by Prudential shows that around 17 per cent of 55 to 64-year-olds set aside at least 20 per cent of their monthly income for retirement, and therefore cut back on things that they shouldn't.

The problem is that many people do not pay enough attention to saving consistently when they are younger and then panic as they get older and seriously curb their spending.

Stephen Lowe, director of worksite communications at Prudential, explained: "Panic saving as you draw close to the end of your normal working life is not ideal.

"It is much better to have a financial plan in place as soon as possible and preferably when you first start working."

He added: "This will not only help ensure that you have a bigger retirement fund but also help you finance other major events in your life."

Around 21 per cent in this age group are also going without a new car as part of their panic saving.

Other expenses being cut back on include socialising, holidaymaking, new clothes, home improvements and spending money on their children.

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Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.